AIM Rule 26

HaloSource, Inc., is a clean water technology company that develops and manufactures products and that licenses to others its proprietary technology for water treatment.

HaloSource, Inc., is a corporation organized under the laws of the State of Washington in the United States of America. Its main country of operation is the United States of America. It also has operations in India and China. The liability of the shareholders is limited.

The Company is not subject to the UK City Code on Takeovers and Mergers. The rights of shareholders may be different from the rights of shareholders in a UK-incorporated company.

Please view the Board of Directors page for more information.

Please view the Corporate Governance page for details of the responsibilities of the board and corporate governance committees.

Common shares in HaloSource, Inc., are admitted to trading on AIM.

The number of common shares issued as of 30 June 2017: 337,970,964 (none in treasury)

Shares not in public hands: 80%

Significant shareholders are listed in the table below.

Shareholder Number of
Common Shares
Percentage of issued
Common Share capital
Invesco Perpetual 96,657,346 28.6%
Woodford Investment Management 84,116,135 24.9%
Brittania Holdings 18,715,469 5.5%
Hargreave Hale 16,857,200 5.0%
JO Hambro Capital Management 10,901,404
3.2%
S. Crum Family Trust 10,498,688 3.1%
Mr. D Richardson 10,498,688 3.1%

The common shares of the company have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, pledged or otherwise transferred except if such transfer is effected (1) in a transaction meeting the requirements of Regulation S under the Securities Act, (2) pursuant to an effective registration statement under the Securities Act or (3) pursuant to an available exemption from the registration requirements of the Securities Act, in each case in accordance with all applicable Securities Laws and any applicable state, foreign (including UK) or other securities laws. Hedging transactions involving the common shares of the company may not be conducted unless in compliance with the Securities Act. All common shares in the capital of the company have the same rights under the company's constitutional documents. The company's common shares trade under the HAL.LN and HALO.LN ticker symbols. The HAL.LN line of stock represents common shares that still bear the Regulation S restrictive legend and may be traded only in certificated form. If the common shares meet the requirements of Rule 144 of the Securities Act, a holder may transfer the relevant common shares from the HAL.LN to the HALO.LN line of stock and the restrictive legend will be removed from the common shares. The HAL.LN shares are subject to certain trading restrictions. The HALO.LN shares are unrestricted.

The Company completed secondary placings of 80,000,000, 63,636,363 and 117,692,560 new common shares on 19 October 2012, 18 November 2014 and 23 June 2017, respectively. As of 30 June 2017, there was a total of 337,970,964 common shares in the company outstanding (comprising both the HAL.LN and HALO.LN shares), all of which are voting shares. The shares issued pursuant to the secondary placings were in the HAL.LN line of stock that bear the Regulation S restricted legend and may be traded only in certificated form.

As of 30 June 2017, there was a total of 270,430,525 HAL.LN shares outstanding. 117,692,560 of the HAL.LN shares, as well as those shares periodically issued by the company as a result of employee stock option exercises, which are publicly disclosed, are subject to distribution compliance restrictions under Regulation S. However, all the HAL.LN shares contain U.S. Securities Act of 1933 legends, and absent registration under such Act, holders must have an available exemption (e.g., Rule 144) in connection with any sales to U.S. persons.

As of 31 December 2016, there was a total of 67,540,439 HALO.LN shares outstanding. The HALO.LN shares do not contain any restrictive legend. In general, these shares are freely tradable unless they are held by persons or obtained from persons who are (or during the last three months were) affiliates of HaloSource.

Holders should consult their legal advisers if they are uncertain of their status

The company was admitted to trading on AIM on October 18, 2010. Please view the AIM Admission document.

Regulatory announcements can be viewed here.

Nominated Adviser and Broker
Liberum Capital Limited
Ropemaker Place, Level 12
25 Ropemaker Street
London EC2Y 9LY

Reporting Accountant
BDO LLP
55 Baker Street
London W1U 7EU
and
BDO USA, LLP
600 University Street, Suite 2528
1 Union Square
Seattle, WA 98101

Lawyers to the Company
Taylor Wessing LLP
5 New Street Square
London EC4A 3TW

K&L Gates LLP
925 Fourth Avenue
Suite 2900,
Seattle,
WA 98104

Depositary
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ

Registrars
Computershare Investor Services (Jersey) Ltd
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES

THIS INFORMATION IS DISCLOSED FOR THE PURPOSES OF AIM RULE 26.

THIS PAGE WAS LAST UPDATED ON MAY 23, 2017.